Issue Number 11
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The Dealmakers Issue Number 11 for the week of March 27, 1998.

 

My Way by Ted Kraus

 

I know I've said this before, but what I can't understand is that if I'm so smart, why aren't I rich?  I just received the March issue of Shopping Centers Today and read two of their feature articles, which showed I was both smart and dumb.  The first was in their Creative Leasing Section and told how off-price and full-price retailers are "moving" into the same neighborhoods.  It goes on to say how traditional retailers are opening their off-price division in the same area that their contemporary stores are operating and have encountered little adversity when it comes to consumer reaction.  Hell, I was writing about off-price, outlet and conventional retailers evolving so that they'll be in the same malls and strips together five years ago.  I guess retailers and developers take longer to realize the obvious than brokers do.  Now if I was smart, I would have made money off this.

 

The outlet industry is in a slump right now, partially because of their locations (they're in the middle of nowhere) and mostly because there's little value offered by the retailer to the consumer.  (Side bar: I heard (I wasn't there) the recent "Value Retailing Show" held by the ICSC was slow (there were half the amount of attendees as in the peak years).  Most of the attendees believe the ICSC will fold this show into Vegas in the next year or two.  The ICSC says no; I personally would prefer it.).  FAC Realty Trust  just "acquired" Konover South and transformed themselves from being an outlet developer to a "full service" development management firm.  Simon in reality acquired FAC (top management of Konover took over the board of FAC).  Most of the larger outlet developers are struggling to survive right now and are seeking mergers as their life jacket.  There will be no distinct difference between outlet/conventional developers or retailers within the next three years.  Off 5th will be in the same mall as Nordstroms.  TJ Maxx will be two doors down from The Limited (Old Navy is doing that already, in fact, the higher the volume is for the Gap, the harder (meaning higher rents) they try to place an Old Navy in the same mall).

 

Now in my own humble opinion, there's few really off-price retailers in America today; that sell true branded goods (over runs, last year's style, whatever that means or seconds).  Most of their merchandise is manufactured to be sold in their store, so what the vast majority of off-price/value oriented retailers really are is "promotional" retailers like Petries was or Fashion Bug is (and we all know how well they are doing, in fact the reason Petrie and Fashion Bug had problems was the amount of competition they got from TJ, Ross, etc.).  When I was young and innocent (a long, long time ago) and doing Hit or Miss deals, our customers, for the most part, were upscale.  Today, now that the merchandise carried by these retailers has been downgraded, their clientele is more blue collar.  This isn't meant to be derogatory, just a statement of fact.

 

The second article which showed I was ahead of my time, but didn't have the ability to profit from my "genius" was "Non-retail anchors rescue ailing malls."  It talked about how one mall in Delaware turned around a mini-mall that lost their two anchors and replaced 'em with a call center (telemarketing).  Hell, we were doing that 15 years ago, in fact one client turned a practically vacant mall of 400,000 sq.ft. into an office complex anchored by the IRS (they should die a slow death) and the GSA.  This conversion has made the property more successful than any retail project could have been.

 

Another center we're involved with is converting part of a 300,000 sq.ft. mini-mail into a 55,000 sq.ft. health care center and if we can finalize our deal, Ross Stores will lease the remainder of the vacancy thereby "mixing" non- retail with retail.  None of this is new, just the names have changed to protect the guilty.  Fifteen years ago we pioneered converting distressed retail centers into outlet projects; I just sent out a proposal today to assist in converting a failed outlet center into a traditional strip.  Nothing changes, just the names we call it.

 

On a different note, Ann recently came back from the ICSC's Temporary Tenant Show in Atlanta (only one of us can go to any show when Josh is in school).  She came back excited about the type of retailers she encountered (but said they're not "our" people since they mostly do malls).  She spent hours telling me about everyone and everything she encountered.  She felt it was the most entrepreneurial group she's met in her 16 years of doing retail.  They innovate, make fast decisions on their feet and can be extremely creative.  Almost identical to what this industry used to be before the bean counters took over.  While I don't think I could have made any money/deals if I had attended, it would have been fun.

 

Lately, it seems that every company and publication is bragging that they just had their best year ever and the reason is they're so great.  Bull, "it's the economy, stupid."  Do you think the American public would put up with a President selling out the country to foreigners or accept his interest in young interns if it wasn't for the economy being so good.  Yes, morality is morality (FYI, his relationship with women besides his wife is his and Hillary's business, not ours.  Selling the Lincoln Room is ours), but from the time we took the land away from the Indians, locked up Americans during WWII just because they were Japanese, tolerated McCarthyism and  allowed discrimination against Jews, blacks or any non-whites, we've always put money ahead of principle, so this isn't new.

 

Don't get me wrong, I think this country and it's constitution is great, it's the politicians and the self righteous I have problems with.  What was Mark Twain's line, "Nothing needs changing as much as other people's opinions."  Anyway, back to real estate.  The economy is still going great (but bankruptcies are up) and there doesn't appear to be any black clouds on the horizon, but I don't understand most of what's happening in our industry today.  Either it's because I'm too old, too stupid or I'm one of the few sane people left in the industry today that is sane (I also don't understand the market either).

 

Fifteen or twenty year ago, Walter Samuels of RD Management told me, "If you have patience and deep pockets, you can't lose money on shopping centers."  Over the years I've found him to be correct.  A recent example is near where I live there's a mini-mall (200,000+/- sq.ft.) built eight to ten years ago.  Its always been a bomb, but because it's owned by a pension fund, it wasn't allowed to go under.  Recently, the current management/leasing team was able to attract some exciting tenants (Restoration Hardware, Pottery Barn, Smith and Hawken, etc.).  I'm sure they used a heavy dose of TI to attract the retailers, but it should work.  Once in, these new retailers will complement, not compete with the regional mall a mile away.  In the past, the mall did (I'm told) percentage only deals with the likes of The Limited, Gap, etc. who were also in the nearby regional mall, so the center failed.  Now, it should succeed.  However, the pension fund will never see the "return" they originally contemplated because of all the years of losses.  Oh well, it's only someone's pension.

 

 

Retailers Seeking Sites Throughout The Carolinas

 

MAACO Enterprises, Inc. operates 525 MAACO Auto Painting & Bodyworks centers throughout North America and 45 Goddard School childcare centers.  MAACO centers occupy spaces of 7,000 sq.ft. to 10,000 sq.ft. in freestanding facilities on one acre of land.  Plans call for 65 openings in the coming 18 months.  Expansion will take place nationwide.  Preferred demographics include vehicle registrations of 50,000 within five miles.  Goddard locations are build-to-suits running 6,400 sq.ft. to 7,700 sq.ft. on one-plus acres of land in high traffic residential and business areas.  Plans call for 65 openings in the coming 24 months.  Expansion will take place nationwide.  Preferred demographics include a population of 60,000 to 75,000 within five miles earning $50,000 to $75,000 as the median household income.

  For more information, contact Rich Mina, MAACO Enterprises, Inc., 381 Brooks Road, King of Prussia, PA 19406; 610-265-6606, Fax 337-6176, e-mail rmina@maaco.com.

 

Peebles, Inc. trades as Peebles Department Stores at 90 locations in AL, DE, KY, MD, NJ, NY, NC, OH, PA, SC, TN and VA.  The department stores occupy spaces of 15,000 sq.ft. to 40,000 sq.ft. in regional malls, power and strip centers.  Preferred co-tenants include JC Penney, Kmart, Wal*Mart and supermarkets.  Plans call for 10 openings in the coming 18 months.  Expansion will take place in the Eastern region.  Leases running 10 to 20 years are typical.

  For more information, contact David Bordsen or Bruce Wright, Peebles, Inc., One Peebles Street, South Hill, VA 23970-9580; 804-447-5414, Fax 447-5474.

 

Ostrow Textile Company, Inc. does business as Plejs Linen Supermarkets at 47 locations in FL, GA, NC and SC.  The stores, selling linens and housewares, occupy spaces of 6,000 sq.ft. to 14,000 sq.ft. in regional malls, power and strip centers.  Preferred anchors include Kmart and TJ Maxx.  Plans call for the opening of four units in the coming 18 months.  Expansion will take place in NC.  Leases running six years are typical.

  For more information, contact Steve Ellington, Ostrow Textile Company, 923 Standard Street, Rock Hill, SC 29730-6412; 803-324-4284, Fax 324-7942.

 

Pic 'N Pay Stores, Inc. trades as Pic 'N Pay Shoes, Shoe World and Shoe City at 485 locations in FL, GA, LA, MD, MS, NC, OH, SC, TX, WV and Washington, D.C.  The shoe stores occupy spaces of 3,200 sq.ft. in power centers.  Preferred anchors include Kmart, Target, Wal*Mart and junior department stores.  Plans call for 35 openings in the coming 18 months.  Expansion will take place in FL, GA, NC, SC and Washington, D.C.  Preferred demographics include a population of 50,000 within five miles earning $35,000 as the average income.  Leases running five years are typical.

  For more information, contact The Director of Real Estate, Pic 'N Pay Stores, Inc., 10301 Old Monroe Road, Matthews, NC 28105-8307; 704-847-8871, Fax 841-6232.

 

Harris-Teeter, Inc. trades as Harris-Teeter at 140 locations in FL, GA, NC, SC, TN and VA.  The supermarkets occupy spaces of 20,000 sq.ft. to 60,000 sq.ft. in freestanding facilities and strip centers.  Plans call for 15 openings in the coming 18 months.  Expansion will take place in the existing markets.

  For more information, contact Ted Barnes, Harris-Teeter, Inc., 701 Crestdale Drive, Matthews, NC 28105; 704-845-3100, Fax 845-3165.

 

Always Open operates eight locations in IL, IN, IA and OH.  The convenience stores occupy spaces of 3,000 sq.ft. in freestanding facilities.  Preferred anchors include Kmart, Wal*Mart and supermarkets.  Plans call for 35 openings in the coming 18 months.  Expansion will take place in AL, GA, KY, SC and TN.  Preferred demographics include a population of 80,000 within three miles earning $33,000 as the average income.  Leases running 20 years are typical and the company is franchising.

  For more information, contact The Director of Real Estate, Always Open, 15205 West 101 Avenue, Dyer, IN 46311-3035; 219-365-4007, Fax 365-4229.

 

ATM Enterprises does business as First American Rental Center at 32 locations in IL, GA, SC and WI.  The stores, offering furniture, electronics and appliances on a rent-to-own basis, occupy spaces of 3,000 sq.ft. to 5,000 sq.ft. in freestanding facilities, regional malls, power and strip centers.  Preferred anchors include Big Lots, Family Dollar, Kmart, Target, Wal*Mart and supermarkets.  Plans call for 16 openings in the coming 18 months.  Expansion will take place in AL, GA, SC and TN.  Preferred demographics include a population of 30,000 within five miles earning $25,000 as the average income.  Leases running three to five years are typical and the company prefers $2 psf in T.I.  The company cites Rent-A-Center, Renter's Choice and Aaron's as competition.

  For more information, contact David Oliver, ATM Enterprises, 6400 Hillandale Drive, Lithonia, GA 30058; 770-482-2400, Fax 482-8971.

 

Winn-Dixie (Charlotte Division) operates 186 locations in GA, NC, SC and TN.  The supermarkets occupy spaces of 35,000 sq.ft. to 60,000 sq.ft. in freestanding facilities and strip centers.  Plans call for 12 openings in the coming 18 months.  Expansion will take place in the existing markets.  Leases running 20 years are typical and the company prefers build-to-suit deals.

  For more information, contact M. Adamson, Winn-Dixie, PO Box 8, Taylors, SC 29687; 864-322-1710, Fax 322-1727.

 

Wooten Oil Company trades as Fastop and Kwik Mart at 24 locations in NC.  The convenience stores, which also sell gasoline, occupy spaces of 800 sq.ft. to 3,500 sq.ft. in freestanding facilities.  Preferred co-tenants include Burger King and McDonald's.  Plans call for two openings in the coming 18 months.  Expansion will take place in the existing market.  Preferred demographics include a population of 5,000 within three miles earning $20,000 as the average income.  Leases running 30 years are typical.

  For more information, contact S. Dillon Wooten, Wooten Oil Company, PO Box 858, Goldsboro, NC 27533-0858; 919-734-1357, Fax 735-4677.

 

Wills Book & Stationery Co., Inc. trades as Wills Bookstores at 10 locations in FL, NC, SC and VA.  The bookstores occupy spaces of 10,000 sq.ft. to 20,000 sq.ft. in regional malls.  Preferred anchors include major department stores.  Plans call for three openings in the coming 18 months.  Expansion will take place in either NC, SC, TN or VA.  Preferred demographics include a population of 20,000 within five miles earning $38,000 as the average income.  Leases running 10 to 20 years are typical and the company cites B. Daulton, Waldens, Books A Million, Barnes & Noble and Borders as competition.

  For more information, contact Randy Jorgensen, Wills Book & Stationery Co., Inc., 103 Longale Road, Greensboro, NC 27409; 910-299-1411, Fax 299-1414.

 

Lowes Food Stores, Inc. trades as Lowe's Food, Galaxy Stores, IGA and Just $ave Foods at 102 locations in NC and VA.  The supermarkets occupy spaces of 15,000 sq.ft. to 50,000 sq.ft. in strip centers.  Preferred co-tenants include Kmart, Wal*Mart, TJ Maxx and drug stores.  Plans call for 10 openings in the coming 18 months.  Expansion will take place in the existing markets.

  For more information, contact Doug Vaughan, Lowes Food Stores, Inc., 1381 Old Mill Circle, Winston-Salem, NC 37114; 336-659-0180, Fax 659-2434.

 

Sharon Luggage Ltd. operates 15 locations in NC and SC.  The luggage stores occupy spaces of 3,000 sq.ft. to 7,000 sq.ft. in freestanding facilities, power centers and regional malls.  Plans call for one opening in the coming 18 months.  Expansion will take place in NC.  Leases running eight years are typical.

  For more information, contact Paul Stieger, Sharon Luggage Ltd., 8000 Arrow Ridge Road, Charlotte, NC 28273-5604; 704-525-4066, Fax 525-4552.

 

 

New Construction

 

The Sembler Company recently broke ground on Publix at Powder Springs in Powder Springs, GA.  The 78,645 sq.ft. project will be anchored by Publix Supermarket, Ace Hardware, Wendy's and a video store.  Two outparcels remain available for lease.  The site is expected to open during Spring 1999.  The company recently completed construction and opened Robson Crossing Shopping Center in Oakwood, GA.  The 83,033 sq.ft. project is anchored by a 51,000 sq.ft. Publix Supermarket.  Other tenants include Buffalo's Cafe, Hair Cuttery, Lanier Coley Eyecare, GNC, Mailboxes Etc., La Parilla Mexican Restaurant and Sylvan Learning Center.  A Hollywood Video store occupies an outparcel and four additional outlots are available.

  For more information, contact Jeff Fuqua of The Sembler Company at (404-816-2219).

 

ARC Properties plans to break ground during Fall on Parkway 70 Plaza in Brick, NJ.  The 630,000 sq.ft. project will be located on Highway Rt. 70, a quarter-mile east of Exit 88 of the Garden State Parkway.  The site is adjacent to a 120,000 sq.ft. Target currently under construction and a proposed Lowe's Home Improvement Center.  Other retailers in the area include Home Depot, Barnes & Noble, Sports Authority, A&P Supermarket and Sony Theaters.  Negotiations are ongoing with several anchor tenants for the project.

  For more information, contact Ed Jaten if ARC Properties at (973-345-1900).

 

National Realty & Development Corp. recently broke ground on The Marketplace at Manville in Manville, NJ.  The project will be anchored by a 124,936 sq.ft. Wal*Mart, a 49,804 sq.ft. A&P Supermarket, a 46,000 sq.ft. Reading 12-plex movie theater, a 15,000 sq.ft. Rag Shop and an 8,750 sq.ft. Fashion Bug.  Other tenants will include Cole Vision, Arby's and McDonald's.  The site is expected to open during October.

  For more information, contact National Realty & Development Corp. at (914-694-4444), Fax (694-5448).

 

Vestar Development Co. recently broke ground on Long Beach Towne Center in Long Beach, CA.  The 1.1 million sq.ft. power center, which is being developed on the site of the former Long Beach Navy Hospital, will be anchored by a 26-screen Edwards Theater, Sam's Club, Staples, Barnes & Noble, Ross Dress for Less, Sports Authority, Old Navy, AutoNation, El Torito, Roadhouse Grill and Trilussa Restaurants.  The project is expected to open during Fall.

  For more information, contact Vestar Development Co. at (602-866-0900).

 

 

Financial News

 

Theatreplex Entertainment Properties, Inc. (312-454-8328) recently formed a strategic partnership with ORIX Real Estate Equities, Inc.  Over the next two years, Theatreplex plans to invest $250 million in freestanding multiplex theaters and theater-anchored community entertainment centers nationwide.  Together with ORIX, Theatreplex will offer turnkey development services and net-lease, construction and acquisition financing to national theater chains and smaller, family-run exhibition companies.  Theatreplex will provide net-lease financing and will acquire for investment existing net-leased theater properties while ORIX will provide complementary development expertise and a nationwide network of local partners to uncover development opportunities.

 

Lowe's Companies, Inc. (910-658-4223) reported that its fiscal 1997 net earnings increased 22% to $357.5 million from $292.2 million during FY96.  Net sales for the year were up 18% to $10.137 billion from $8.6 billion during FY96.  Comparable store sales increased 3.8% for the year.  During the year, the company opened 66 stores and ended the year with 446 units.

 

Proffitt's, Inc. (901-397-2113) reported that its recent acquisition of Carson Pirie Scott & Co. cost $13 million in fees and another $15 million in restructuring charges.  In addition, it is estimated that Carson's will cost Proffitt's another $9 million to $11 million this year as it is integrated with the rest of the company.

 

Longs Drug Stores Corporation (510-210-6763) reported that its fiscal 1998 sales increased to $2.95 billion from $2.83 billion during FY97.  Comparable store sales increased 4.6% and pharmacy sales increased 11% for the year.  Net income for the year was $57.7 million, compared with net income of $58.6 million the previous year.  The fiscal year results were impacted by one less week in the reporting period along with initial expenses associated by Year 2000 compliant systems.  The company currently operates 350 drug stores in CA, CO, HI and NV.

 

Aaron Rents, Inc. (404-231-0011) recently applied for a listing of its common stock on the New York Stock Exchange.  The company currently operates 395 furniture rental stores in 32 states.

 

Wal*Mart Stores, Inc. (501-273-4000) reported that its fiscal 1998 overall net sales increased 12% to $117.9 billion from $104.5 billion the previous year.  Net income for the year increased 15% to $3.5 billion from $3.05 billion the previous year.  By division, Wal*Mart's sales increased 12% to $83.8 billion from $74.8 billion and showed a 16% increase in operating profit to $6.4 billion from $5.5 billion the previous year.  Sam's sales increased four percent to $20.6 billion from $19.7 billion and showed a 10% increase in operating profit to $950 million from $864 million the previous year.  The International division had a 50% increase in sales to $7.5 billion from $5 billion and had an operating profit of $262 million, up from $24 million the previous year.  During the year, the company opened 37 discount stores, closed one and relocated or expanded four; opened 97 Supercenters, including 75 discount store replacements; opened or acquired 289 international units; and opened eight Sam's Clubs, closed one and relocated one.  At the end of its fiscal year, the company operated 1,921 Wal*Mart stores, 441 Supercenters and 443 Sam's Clubs nationwide.  Internationally, the company operates stores in Argentina (9), Brazil (8), Canada (144), Germany (21), Mexico (402), Puerto Rico (14) and joint ventures in China (3) and Indonesia (2).

 

Nordstrom (206-628-1725) recently announced that it is forming a series of new business units aimed at boosting the company's profitability and productivity.  Rather than operating as a single large business entity as it has in the past, with its six co-presidents responsible for merchandising and operations companywide, Nordstrom is giving authority to nine general managers who will be responsible for making major decisions within their units.

 

The Home Depot (770-433-8211) reported that its fiscal 1997 net earnings increased 30% to $1.223 billion from $938 million during FY96.  Sales for the year increased 24% to $24.15 billion from $19.5 billion during the previous year.  During the fourth quarter, the company opened 41 stores and ended the year with 624 stores throughout North America.

 

McDonald's Corp. (630-575-6300) is considering a REIT structure that could provide the company with an estimated $9 billion in cash if it places it on the open market.  Currently, the company owns most of the land on which its restaurants sit.

 

Dollar General Corp. (502-237-5444) reported that net income for its fiscal year increased 25.7% to $144.6 million from $115.1 million the previous year.  Total sales for the year increased 23.1% to $2.62 billion from $2.13 billion the previous year and comparable store sales increased 8.4% for the year.  During the year, the company opened 468 new stores and closed 33 to finish with 3,169 stores in 24 states.

 

Payless ShoeSource, Inc. (913-233-5171) reported that its fiscal year profit increased to $17.4 million from $15.1 million the previous year.  Net earnings increased to $128.9 million from $107.7 million and fiscal year sales increased to $2.6 billion from $2.3 billion the previous year.  Comparable store sales increased 5.6% for the year.

 

The Dress Barn, Inc. (914-369-4600) reported that net earnings for its second quarter increased 52% to $8 million compared with $5.3 million during the second quarter last year.  Net sales for the quarter increased 10% to $144.2 million from $131.5 million.  Comparable store sales increased five percent for the quarter.  The company currently operates 679 stores in 43 states.

 

Shoe Carnival, Inc. (812-867-4105) reported that its 1997 fiscal net earnings increased 78% to $7.4 million from $4.1 million during FY96.  Net sales for the year increased 5.4% to $246.5 million from $233.9 million and comparable store sales increased 6.1% for the year.  During FY97 the company opened four stores and closed five.  Currently, the company operates 92 shoe stores throughout the Midwestern and mid-South regions.

 

Montgomery Ward & Co. (312-467-2000) reported a $1.16 billion loss for 1997 after recording a $237 million loss during 1996.  The company's comparable store sales fell 22% in October, 18% in November and 10% in December.  However, despite the bleak financial news, the company is looking to turn a profit by the fourth quarter of this year and emerge from bankruptcy during Spring 1999.

 

 

Mergers & Acquisitions

 

CVS Corp. (401-765-1500) plans to acquire 15 Acme Express stores from F.W. Albrecht Grocery Co.  The deal is part of Albrecht Grocery Co.'s plan to concentrate on its supermarket business.  CVS plans to convert the stores to its format.

 

United Artists Theater Group (303-792-8255) and Hicks, Muse, Tate & Furst, Inc. recently broke off negotiations which would have seen Hicks Muse acquire United Artists for $850 million.  UA officials said that Hicks Muse wanted to close the deal at a lower price and that killed the deal.

 

Mayor's Jewelers (305-442-4233) has agreed to be acquired by Jan Bell Marketing for $92.8 million in cash, stock and assumption of debt.  Jan plans to keep the Mayor's Jewelers name and make the company a subsidiary.  Mayor's operates 24 luxury jewelry stores in FL and GA.  Jan Bell operates 447 jewelry departments in Sam's Club stores nationwide.

 

MedMax, Inc. (248-948-1300) and Arrow Corporation, Inc. recently acquired Frank's Pharmacy and Medical Supply in MI.  The two companies plan to retain the Frank's Pharmacy name.

 

Camelot Music, Inc. (330-494-2282) recently completed its acquisition of The Wall, a 153-unit chain based in Philadelphia, PA.  Camelot plans to retain The Wall name.  The deal give Camelot more than 450 stores in 37 states.

 

Video Update (612-222-0006) is in final negotiations with Banque Paribas for a syndicated senior credit facility up to $120 million to close its acquisition of Moovies, Inc.  Recently, the Board of Directors of both companies approved the proposed acquisition of Moovies by Video Update.  Moovies currently operates and franchises 306 video stores in 17 states.

 

Arthur Treacher's, Inc. (904-739-1200) recently made an offer to acquire Miami Subs Corp.  Terms of the deal were not disclosed.  The companies recently began a co-branding deal at 10 restaurants and that deal triggered the merger talks.  Miami Subs is not actively for sale, but the company has been seeking co-branding partners.  Arthur Treacher's operates 111 fast-food seafood restuarants and Miami Subs opeartes 192 submarine sandwich restaurants.

 

 

Lead Sheet

 

Tadros, Inc.

dba 4M Fashion

1408 Atlantic Avenue

Atlantic City, NJ 08401

609-345-2814, Fax 345-7889

 

Apparel

The nine-unit chain operates locations in NJ and NY.  The apparel stores occupy spaces of 2,800 sq.ft. to 3,000 sq.ft. in downtown store fronts, regional malls and strip centers.  Growth opportunities are sought in NJ.  The company caters to an African-American and Hispanic clientele.

 

Murray's Discount Auto Store, Inc.

dba Murray's Discount Auto Store

Debbie Smith

8080 Haggerty Road

Belleville, MI 48111

313-957-8080, Fax 957-8156

 

Automotive

The 75-unit chain operates locations in IL, MI and OH.  The automotive parts stores occupy spaces of 10,000 sq.ft. in freestanding facilities.  Plans call for 20 openings in the coming 18 months.  Expansion will take place in Chicago, IL; Detroit, MI and Cleveland, OH.  Preferred demographics include a population of 100,000 within three miles earning $25,000 as the average income.  Leases running five to ten years are typical and the company prefers a vanilla shell with tenant improvements.  The company cites AutoZone, Pep Boys and Parts America as competition.

 

Linens 'N Things

Dan Mitchell

c/o Katz & Associates

1100 Jorie Boulevard #372

Oakbrook, IL 60523

630-571-5692, Fax 571-5694

 

Bed/Bath/Linens

The 190-unit chain operates locations nationwide.  The stores, selling bed and bath supplies, occupy spaces of 30,000 sq.ft. to 40,000 sq.ft. in freestanding facilities, power and strip centers.  Plans call for 35 openings annually.  Expansion will take place nationwide.

 

Books-A-Million, Inc.

dba Books-A-Million

Lyle Darnell

402 Industrial Lane

Birmingham, AL 35211-4465

205-942-3737, Fax 942-2147

 

Bookstore

The 165-unit chain operates locations in AL, AR, FL, GA, IL, IN, KY, LA, MO, NC, OH, SC, TN, TX, VA and WV.  The bookstores occupy spaces of 4,000 sq.ft. to 20,000 sq.ft. in regional malls, power and strip centers.  Plans call for 30 openings in the coming 18 months.  Expansion will take place in the existing markets.  Leases running 10 years, with three five-year options, are typical and the company cites Barnes & Noble and Borders as competition.

 

PC Club

Jackson Lan

18537 East Gale Avenue

City of Industry, CA 91748

818-913-2582, Fax 839-8088

 

Computers

The 16-unit chain operates locations in AZ, CA and NV.  The computer stores occupy spaces of 5,000 sq.ft. in strip centers.  Plans call for 20 openings in the coming 18 months.  Expansion will take place in CO, UT and WA.  Leases running five years are typical.

 

Quick Stop Markets, Inc.

dba Quick Stop Markets

Bill Rankin

4567 Enterprise Street

Fremont, CA 94538-7605

510-657-8500, Fax 657-1544

 

Convenience Store

The 115-unit chain operates locations in CA.  The convenience stores, which also sell gasoline, occupy spaces of 2,800 sq.ft. in freestanding facilities.  Plans call for the opening of four units in the coming 18 months.  Expansion will take place in the existing market.  Leases running 15 years are typical and the company is franchising.

 

Stein Mart, Inc.

dba Stein Mart

Mike Allen

1200 Riverplace Boulevard

Jacksonville, FL 32207-9010

904-346-1500, Fax 858-2637

 

Discount Store

The 153-unit chain operates locations in 25 states.  The stores, selling family apparel, gifts, accessories and linens, occupy spaces of 36,000 sq.ft. in regional malls and strip centers.  Preferred co-tenants include upscale apparel stores, bookstores, specialty stores and supermarkets.  Plans call for 50 openings in the coming 18 months.  Expansion will take place nationwide.  Preferred demographics include a population of 120,000 within five miles earning $50,000 as the average income.

 

Medicap Pharmacies, Inc.

dba Medicap Pharmacy

John Pittarelli

4700 Westown Parkway #300 Building 4

West Des Moines, IA 50266-1044

515-224-8400, Fax 224-8415

 

Drug Store

The 152-unit chain operates locations nationwide.  The pharmacies occupy spaces of 1,500 sq.ft. in freestanding facilities, specialty and strip centers.  Preferred anchors include supermarkets.  Plans call for 30 openings in the coming 18 months.  Expansion will take place nationwide.  Preferred demographics include a population of 8,000 within two miles earning $15,000 as the average income.  Leases running five to ten years, with options, are typical and the company is franchising.

 

Great American Cleaners, Inc.

dba Eagle Cleaners

Sean Joseph

1750 University Drive, Suite 111

Coral Springs, FL 33071

954-346-9501, Fax 346-9505

 

Dry Cleaners

The 90-unit chain operates locations in AL, CT, FL, GA, MA, MD, NC, NH, NJ, NY, OH, OK, PA, SC, TX and VA.  The dry cleaners, which also offer alterations and shoe repairs, occupy spaces of 1,500 sq.ft. to 2,000 sq.ft. in strip centers.  Plans call for 30 openings in the coming 18 months.  Expansion will take place in the Eastern and South-Central regions.  Leases running 10 years are typical.

 

Just For Fun, Inc.

dba Just For Fun

Howard Alterson

1901 Raymond Drive #7

Northbrook, IL 60062-6739

847-559-8606, Fax 559-8610

 

Entertainment

The seven-unit chain operates locations in IL, LA, MI and TX.  The arcades occupy spaces of 5,000 sq.ft. in regional malls.  Preferred anchors include movie theaters and food courts.  Plans call for as many as two openings in the coming 18 months.  Expansion will take place nationwide.  Leases running 10 years are typical.

 

S&A Stores, Inc.

dba S&A Stores

Ike Kairey

160 West 34th Street

New York, NY 10001

212-244-2220, Fax 239-4735

 

General Merchandise

The 12-unit chain operates locations in NJ and NY.  The stores occupy spaces of 4,000 sq.ft. to 10,000 sq.ft. in downtown store fronts.  Plans call for three openings in the coming 18 months.  Expansion will take place in the existing markets.

 

Krause's Furniture, Inc.

dba Krause's Custom Crafted Furniture

Mike Kearn

200 North Berry Street

Brea, CA 92821

714-990-3100, Fax 990-3561

 

Home Furnishing

The 88-unit chain operates locations in AZ, CA, CO, CT, FL, IL, NV, NJ, NM, NY, TX and WA.  The stores, selling made to order upholstered furniture and accessories, occupy spaces of 10,000 sq.ft. to 12,000 sq.ft. in freestanding facilities, power and specialty centers.  Plans call for 29 openings in the coming 18 months.  Expansion will take place in the existing markets.  Preferred demographics include a population of 300,000 within five miles earning $35,000 to $100,000 as the average income.  Leases running seven to ten years are typical.

 

Westlake Hardware, Inc.

dba Westlake Hardware

Doug Burton

15501 West 99th Street

Lenexa, KS 66219-1254

913-888-0808, Fax 888-2153

 

Home Improvement

The 60-unit chain operates locations in AR, IA, KS, MO, NE, NM, OK and TX.  The stores, selling hardware and related items, occupy spaces of 22,000 sq.ft. in freestanding facilities and strip centers.  Preferred co-tenants include hobby stores and supermarkets.  Plans call for six openings in the coming 18 months.  Expansion will take place in the Midwestern region.  Leases running 10 years are typical.

 

Reading China & Glass, Inc.

dba Reading China & More!, Kitchen & Company

Alan Gersh

100 Lake Drive

Newark, DE 19702-3317

302-369-0200, Fax 369-0400

 

Housewares

The 34-unit chain operates locations in AL, DE, FL, GA, KS, KY, LA, NC, OH, PA, TN, TX and VA.  The stores, selling housewares, occupy spaces of 25,000 sq.ft. in regional malls, power and strip centers.  Plans call for 25 openings in the coming 18 months.  Expansion will take place nationwide.

 

The Whitehall Co.

dba Whitehall Jewelers, Marks Brothers Jewelry

Jay Lepselter

155 North Wacker Drive

Chicago, IL 60606-1719

312-782-6800, Fax 782-8299

 

Jewelry

The 200-unit chain operates locations in AZ, CA, CO, CT, FL, GA, IL, IN, LA, MA, MN, MO, NV, NH, NJ, NM, NY, NC, OK, OR, PA, RI, TX and VA.  The jewelry stores occupy spaces of 700 sq.ft. to 1,000 sq.ft. in regional malls.  Plans call for 50 openings in the coming 18 months.  Expansion will take place in the existing markets.  Leases running 10 years are typical.

 

Wherehouse Entertainment, Inc.

dba The Wherehouse, Tumusica

Bernie Labowitz

19701 Hamilton Avenue

Torrance, CA 90502-1311

310-538-2314, Fax 538-0746

 

Music

The 225-unit chain operates locations in AZ, CA, CO, NV, OR and WA.  The stores, selling compact discs, tapes, movies, accessories and gifts, occupy spaces of 4,000 sq.ft. to 6,000 sq.ft. in regional malls, power and strip centers.  Preferred anchors include promotional retailers, drug stores and department stores.  Plans call for 25 openings in the coming 18 months.  Expansion will take place in the existing markets.  Leases running 10 years are typical and the company prefers a vanilla shell with T.I. allowances.

 

Tavel Optical Group

dba Dr. Tavel One Hour Optical, Vision Values, Shades, Premium Optical

Lawrence Tavel

2839 Lafayette Road

Indianapolis, IN 46222-2147

317-924-1300, Fax 924-3741

 

Optical

The 32-unit chain operates locations throughout IN.  The optical stores occupy spaces of 1,200 sq.ft. to 2,000 sq.ft. in regional malls.  Growth opportunities are sought in the existing market.  Leases running five years are typical.

 

U.S. Factory Outlets, Inc.

dba U.S. Factory Outlets

Fred Raiff

7 Penn Plaza

New York, NY 10001-3900

212-563-3650, Fax 967-9872

 

Outlet

The 24-unit chain operates locations in AZ, IL, IN, MN, MO, MS, ND, PA, SC, TN and VA.  The stores, selling closeout merchandise such as apparel and hard goods, occupy spaces of 36,000 sq.ft. to 52,000 sq.ft. in outlet, power and strip centers.  Plans call for 10 openings in the coming 18 months.  Expansion will take place nationwide, exclusive of OR and WA.  Preferred demographics include a population of 70,000 within five miles earning $36,000 as the average income.  Leases running 10 years, with three five-year options, are typical.

 

Harwyn Enterprises, Inc.

dba Harwyn Shoes

J. Robert Blumenthal

445 Westbury Boulevard

Hempstead, NY 11550-1940

516-483-8600, Fax 483-8766

 

Shoes

The 18-unit chain operates locations in NJ and NY.  The stores, selling men's better branded footwear, occupy spaces of 1,600 sq.ft. in regional malls.  Plans call for as many as three openings in the coming 18 months.  Expansion will take place in CT, NJ, NY or PA.  Leases running 10 to 12 years are typical.

 

1-800-FLOWERS

Brian McGee

1600 Stewart Avenue, 7th Floor

Westbury, NY 11590-6611

516-237-6000, Fax 237-4942

 

Specialty

The 150-unit chain operates locations in AZ, CA, FL, GA, IL, MI, NJ, NY and TX.  The stores, selling flowers, plants and related gifts, occupy spaces of 2,000 sq.ft. to 3,000 sq.ft. in freestanding facilities.  Preferred co-tenants include dry cleaners, supermarkets and video stores.  Plans call for 75 openings in the coming 18 months.  Expansion will take place in the existing markets.  Preferred demographics include a population of 75,000 within three miles earning $60,000 as the average income.  Leases running five years are typical and the company is franchising.

 

Ebrtos

dba Soccer Master

Emil Brcic

1111 Horan Drive #G

Fenton, MO 63026-1919

314-343-0343, Fax 343-1995

 

Sporting Goods

The 10-unit chain operates locations in AZ, FL, IL, KS and MO.  The stores, selling soccer related sporting goods, occupy spaces of 2,800 sq.ft. to 3,200 sq.ft. in power and strip centers.  Preferred co-tenants include Kmart, TJ Maxx, Wal*Mart, Kids 'R Us, Toys 'R Us, Walgreens, Hallmark, Sports Authority, bed & bath stores, electronics retailers, bookstores and supermarkets.  Plans call for two openings in the coming 18 months.  Expansion will take place in KY, NM, OH or TN.  Preferred demographics include a population of 250,000 within five miles earning $45,000 as the average income.  Leases running five years are typical.

 

Eagle Food centers, Inc.

dba Eagle Country Market Place

Larry Sanford

Route 67 & Knoxville Road

Milan, IL 61264

309-787-7700, Fax 787-7895

 

Supermarket

The 91-unit chain operates locations in IL, IN and IA.  The supermarkets occupy spaces of 56,000 sq.ft. in strip centers.  Preferred co-tenants include Home Depot, Kohls, TJ Maxx and Target.  Plans call for as many as 12 openings in the coming 18 months.  Expansion will take place in the Chicago, IL market.  Preferred demographics include a population of 70,000 within three miles earning $40,000 as the average income.  Leases running 20 years are typical.

 

Video Update

Bruce Carlson

30 East 7th Street #3100

St. Paul, MN 55101

612-222-0006, Fax 229-9661

 

Video

The 700-unit chain operates locations throughout North America.  The video stores occupy spaces of 5,000 sq.ft. in freestanding facilities, power and strip centers.  Preferred anchors include Kmart, Target, Wal*Mart and supermarkets.  Plans call for as many as 100 openings in the coming 18 months.  Expansion will take place nationwide.  Leases running seven to ten years are typical and the company is franchising.

 

 

Who's Opening & Where

 

Saks Fifth Avenue (212-753-4000) recently opened a Main Street store at The Shops at Blackhawk in Blackhawk, CA.

 

Steinmart (904-346-1500) recently opened a 40,000 sq.ft. store in Poway, CA.

 

Frozen Fusion (602-948-5604) recently opened its first store in MA at Emerald Square Mall in North Attleboro.

 

Borders (313-913-1323) recently opened a bookstore in Livingston, NJ.  The company is planning to open a 24,500 sq.ft. bookstore at Sanbusco Market Center in Santa Fe, NM during late Fall.

 

Dollar General Corp. (502-237-5444) recently opened a 6,000 sq.ft. store at Belleview Square Shopping Center in Rock Hill, SC.  It is the company's fourth store in Rock Hill.

 

Restoration Hardware (214-750-0011) recently opened its first South FL location at Aventura Mall in Aventura, FL.

 

New Balance (617-783-4000) recently opened a company store at Aventura Mall in Aventura, FL.  It is the company's 10th unit nationwide and first in FL.

 

Discovery Channel (214-490-8520) recently opened a 30,000 sq.ft., four-level store at the MCI Center in Washington, D.C.

 

CompUSA, Inc. (972-982-4000) recently opened a 19,800 sq.ft. store at Lexington Green Shopping Center in Lexington, KY.  The company is planning to open a 22,900 sq.ft. store at Townline Square Shopping Center in Jackson, MS during Spring.

 

New West Eyeworks, Inc. (212-343-0552) plans to open 16 Vista Optical stores in Orlando, Tampa, St. Petersburgh and Jacksonville, FL before the end of the year.  It is the company's first move into the East Coast market.

 

Whole Foods Market, Inc. (713-661-7753) recently opened a 39,000 sq.ft. natural foods supermarket in Boulder, CO.  It is the company's first unit in the state.

 

Laughner's Cafeterias (317-783-2907) plans to open a new concept called Loon Lake Lodge, a wilderness theme restaurant with animatronic animals, 16-foot high fake trees and the feel of a turn-of-the-century lodge for the rich.  The 14,000 sq.ft. unit will be located in Castleton, IN and is expected to open next month.  If the venture proves successful, the company plans to take the concept national.

 

Eagle Hardware & Garden (206-227-5740) recently opened a 200,000 sq.ft. store in La Quinta, CA.  The company is planning to open as many 30 stores throughout CA, beginning with Southern CA, in the coming five years.

 

Staples, Inc. (508-370-8500) plans to open a 26,500 sq.ft. store in a former Better Bodies gym location in Eugene, OR during Summer.

 

 

Space Place

 

Georgia

 

Alpharetta-  Medlock Crossing is anchored by Regal 18 Cinema.  The 158,044 sq.ft. project has spaces of 1,000 sq.ft., 2,250 sq.ft., 3,000 sq.ft. and 7,000 sq.ft. available for lease.  Demographics include a three-mile population of 34,998 earning $79,197 as the average income.   In Kennesaw-  Cobb Place is anchored by Bed Bath & Beyond, Service Merchandise, Uptons and AMC.  The 320,000 sq.ft. project has spaces of 1,770 sq.ft., 3,000 sq.ft., 5,000 sq.ft., 10,000 sq.ft. and 13,000 sq.ft. available for lease.  Demographics include a three-mile population of 28,000 earning $58,000 as the average income.

  For details, contact Michael Rayburn (Medlock) or Evan Dujanovic (Cobb) of A.B. Shopping Centre Properties at (205-969-1000), Fax (969-1051).

 

Roswell-  Roswell Marketplace is anchored by Winn-Dixie, Le Peep and Starbucks.  The 128,709 sq.ft. project has 930 sq.ft., 1,230 sq.ft., 1,805 sq.ft. and 11,141 sq.ft. available for lease.  Demographics include a three-mile population of 50,315 earning $63,826 as the average income.

  For details, contact Jane Young of Faison at (770-901-6475), Fax (698-2222).

 

North Carolina

 

Lexington-  Lexington Center is anchored by Winn-Dixie Marketplace, Eckerd, Old America and Sears.  Spaces from 2,000 sq.ft. to 2,500 sq.ft. are available for lease.  In Raleigh-  Raleigh Boulevard is anchored by Food Lion and Eckerd.  A 4,000 sq.ft. space is available for lease.

  For details, contact Christine Cole of Edens & Avant at (803-779-4420), Fax (765-0684).

 

Morganton-  Magnolia Plaza is anchored by Wal*Mart, Goody's and Ingles Supermarket.  The 105,000 sq.ft. project has space available for lease.

  For details, contact JP Properties, Inc. at (770-352-0056).

 

South Carolina

 

Anderson-  Lakeside Square is anchored by Dollar General and Badcock Furnishings.  The 48,441 sq.ft. project has spaces of 3,997 sq.ft. and 22,270 sq.ft. available of lease.  Also in Anderson-  Belvedere Plaza is anchored by Hamrick's, Pier 1 and Plej's.  Spaces from 3,000 sq.ft. to 26,000 sq.ft. are available for lease.  In Columbia-  Capitol Centre is anchored by Circuit City, OfficeMax and Babies 'R Us.  The 203,792 sq.ft. project has spaces from 1,200 sq.ft. to 30,000 sq.ft. available for lease.  Also in Columbia-  Capitol Square is anchored by Bi-Lo and Family Dollar.  The 79,921 sq.ft. project has spaces of 2,046 sq.ft., 2,900 sq.ft., 4,000 sq.ft. and 11,500 sq.ft. available for lease.  In Greenville-  Terrace Shopping Center is anchored by Heilig-Meyers and Family Dollar.  Spaces from 600 sq.ft. to 15,000 sq.ft. are available for lease.  In Greenwood-  Greenwood Plaza is anchored by Heilig-Meyers.  Spaces from 1,220 sq.ft. to 60,000 sq.ft. are available for lease.  In Laurens-  Western Square-Laurens is anchored by Bi-Lo, Movie Gallery, CVS and Dollar General.  The 81,139 sq.ft. project has spaces of 3,330 sq.ft., 4,050 sq.ft., and 7,200 sq.ft. available for lease.  In Lexington-  Triangle Village is anchored by Food Lion, CVS and Pic 'N Pay.  The 115,754 sq.ft. project has spaces of 3,750 sq.ft., 4,000 sq.ft. and 25,000 sq.ft. available for lease.

  For details, contact Lyn Whitman, Doug Rice, John Abney, Amy Rhymer, Danny Bonds, Jim Pagett, Legree Dyson or Christine Cole of Edens of Avant at (803-779-4420), Fax (765-0684).

 

Columbia-  Park Centre is anchored by Wal*Mart, Harris Teeter and Revco.  The 190,000 sq.ft. project has space available for lease.  In Spartanburg-  East Main Centre is anchored by Wal*Mart and Goody's.  The 170,000 sq.ft. project has space available for lease.

  For details, contact JP Properties, Inc. at (770-352-0056).

 

Tennessee

 

Nashville-  Priest Lake Plaza is anchored by Kroger, Revco and Dollar General.  The 126,700 sq.ft. project has spaces of 1,200 sq.ft., 2,400 sq.ft. and 4,000 sq.ft. available for lease.  Demographics include a three-mile population of 45,213 earning $49,872 as the average household income.

  For details, contact Joshua Weinkranz of Rosen Associates Management Corp. at (516-822-5350), Fax (433-3821).